Shares of Alcoa Inc. (NYSE: AA) declined 5.23 percent to $16.84 in early trade as its first quarter revenue fell short of expectations. The New York-based aluminum producer said its first quarter sales grew 22 percent to $5.96 billion, but fell short of analysts' forecast of $6.07 billion. Earnings from continuing operations were $309 million or 27 cents a share, compared to a loss of $194 million or 19 cents a share last year.

Meanwhile, Japanese Nuclear and Industrial Safety Agency (NISA) said it has raised the accident levels at Fukushima Daiichi Nuclear power plant to level 7 Major Accident. The 1986 Chernobyl accident is the only other nuclear accident to have been rated a Level 7 event.

On the economic front, the US trade gap narrowed slightly less-than-expected in February, following a surge in the previous month. The US trade deficit of goods and services fell to $45.8 billion in February compared with a deficit of $47 billion in November and against analysts’ expectations of $45.7 billion in February.

The euro advanced 0.44 percent to 1.4500 against the dollar and the yen advanced 0.71 percent against the greenback.

European stock markets are currently trading lower with FTSE 100 down by 83.80 points, DAX30 down by 92.19 points and CAC 40 down by 59.97 points.